STATEHOUSE – House Bill (HB) 1324, which deals with natural gas as a motor fuel, passed out of the Senate with a 47-3 vote. State Representative Randy Frye (R-Greensburg) authored the measure.

“With unleaded gas prices ranging from $3.50 to $4, the use of natural gas could conceivably save you 40 percent or more at the pump,” said Rep. Frye. “Not only are you saving money by using natural gas, but that money is also staying in the United States. Our country currently has over 100 years of natural gas reserves. We can use that fuel instead of importing from outside sources.”

HB 1324 increases the maximum weight limitation for a vehicle that uses natural gas as a motor fuel by 2,000 lbs. The bill also imposes the motor carrier fuel tax on natural gas, equivalent to the existing rates imposed on gallons of gasoline.

“The goal of this legislation is to encourage businesses to switch their fleets from diesel to natural gas. An increase in demand for natural gas will increase the number of fueling stations, making the product more readily available for Hoosiers,” said Rep. Frye. “Providing tax credits for large vehicles is the best way to incentivize businesses to switch to natural gas.”

The bill levies an excise tax of $0.16 per diesel gallon equivalent on alternative fuels. It estimated that Indiana could bring in another $5 million or more in state revenue.

“This legislation has a very positive fiscal impact for the state,” said Rep. Frye. “By generating an estimated $10 million or more in revenue, Indiana will have more money to invest in roads.”

HB 1324 has been returned to the House with amendments.

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Rep. Frye (R-Greensburg) represents Ohio and Switzerland counties, as well as portions of Ripley, Decatur, Jennings, Jefferson and Dearborn counties

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